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A FEW
days ago I was a guest at Shop Talk, a show on
ANC. I may be a Registered Financial Planner and a
Personal Finance Educator and all that, but I guess what
really qualifies me on the subject is my being a parent
to four wonderful kids—two girls (Billie and Gabbie) and
two boys (Riggs and
Chino). My wife Mia and I have been forking out a lot of
money just to be able to send our kids to school, and,
like any parent will say, it’s never really easy.
Just how
difficult is it? About 13 years ago, our eldest daughter
Billie entered preschool. I can still remember her
anxiety. . . how she didn’t want to be left alone in
school and how she clung to her mom’s legs so tightly
out of fear of her new environment. . . great memories
indeed. Two years later, our second daughter Gabbie had
a different experience. . . she didn’t have the fears of
her ate and entered the school like a very confident
little girl.
Aside
from their first-day school experiences, I also
remembered their tuition. My first child’s Kinder 1
tuition at her school was about P35,000, and my second
daughter’s slightly increased to about P38,000. I am
about to write a check for the tuition of my second
child (she still remained in her original school)—a
whopping P91,000! That’s nearly a surge of 140 percent
in just a little over a decade. My son Riggs will be
entering Kinder 2 this June, with a tuition cost of
P93,000 per year. These figures are not inclusive of
books, uniforms, etc., just tuition. It’s a blessing
that Chino, my youngest, will not yet go to school this
school year. . . we can sure need some relief.
My
biggest concern is school year 2009, as my eldest enters
college while my youngest enters preschool. I will be
sending four kids to school and that is challenging for
me and my wife, with our modest incomes.
Let me
echo what I said at the show. First, it’s about
priorities. Filipino parents are so admirable that they
move heaven and earth just to send their kids to school.
They labor, they sacrifice. . . . It is not uncommon to
find deserving students in expensive schools even if
their parents can’t really afford it. While that is
indeed an admirable trait, it is also a big concern.
Why? Many parents pour everything they have into their
children’s education without really planning for
themselves. The result? They will be dependent on their
children in the future, an offshoot of putting
everything in the education of their kids.
This is
a very controversial argument. It is every parent’s
concern and priority to provide for their children,
education being one of them. I am not saying that
parents forfeit this obligation; on the contrary, I
often coach parents on how to properly prepare for
education costs. But parents must put things in their
proper perspective. The ability to provide for their
kids’ education is commensurate with their ability to
put their financial life in order. We can’t sacrifice
quality living and preparation for the future in the
name of our kids’ education. When it comes to expensive
education, I often say “go!”, but just make sure you can
truly afford it. There are preschools today that cost
P200,000 or more. The sprouting of “international”
schools that charge outrageous tuition is an indication
of how we put value on education. I often ask myself if
sending my kids to expensive schools is really worth it.
Often, our finances are so drained because of education
that we tend to sacrifice other areas like retirement
planning, investments, etc.
Is
expensive tuition really worth it? Is quality education
really all about expensive schools? How much money do we
spend on private tutors? We live in a culture that
encourages sending our kids to schools—at a price we can
hardly afford that it puts too much pressure on us
parents. Sacrificing for our children’s future is
admirable, and I agree with that 100 percent. But I
disagree with putting our children’s hopes solely on
educational institutions. Being a training professional
myself, I know that the ability to teach people is not
just about good teachers, materials and facilities. It’s
really more than that.
Honestly, did we really use what we learned in college
when we started to work? Probably for doctors, dentists,
lawyers. . . but for the rest of us? Hmm. Did school
really prepare us for life? Do expensive, exclusive
schools increase the chances of success? There really is
no way for us to validate these arguments, but there is
something I am sure about. Not having gone to expensive
schools will not prevent a person from being successful.
How many successful people did not go to an expensive
university? A lot! I often check out many executives and
successful entrepreneurs for their educational
background. There are just as many successful people who
did not go to an expensive school as those who did.
So
what’s the problem with the pressures of education?
Well, if we put nearly all our resources in it, we tend
to neglect other things that are important, such as
retirement. Let me use myself as an example. I have four
kids. If I opt to send all of them to über-expensive
schools at our current income level, I will not only
neglect our retirement, I will be broke. My wife and I
will not have resources to be able live a quality life
after our kids leave the nest. As my youngest graduates,
I will be retired. The pressures of financing their
education will drain us to a point that as soon as I
retire, my wife an I will be dependents. The question
is, dependent on whom? Our kids? Isn’t that unfair to
them? With the pressures of surviving, it will be
severely difficult for them to take care of us while
making a life for themselves. Isn’t that very
irresponsible of me and my wife, as well?
Solution? Well, priorities and common sense. Yes,
education is our priority as parents, but so is
preparing for our own future. Let us not sacrifice our
future in the guise of education. Look for balance,
there are many other practical solutions. Look for
schools that offer quality education without the hefty
price tag. The success of a child does not come from the
school but from the home. One study proved parents,
grandparents and other older members of the family are
better tutors than those expensive tutors or tutorial
schools.
Another
practical suggestion: home school. If done properly,
home schooling can help children fare better in life
compared with those who went to expensive schools. Both
husband and wife need to work to make ends meet; with
educational costs taking a drain, it may make more sense
if the wife stays home and home- schools the kids. Most
mothers I speak to will often tell me that had it not
been for financial pressures, they’d rather stay home
and take care of their kids. Do the math: If you spend
about P300,000 on education for all your kids and the
mother makes just about P300,000, it is financially
feasible to just home-school the kids.
Moms can
take a job from the house or start a home business, as
well, while taking care of kids, including their
education. Fathers can help, as well; there are many
things husbands should be doing to help wives—taking
care of the kids should be up there especially when you
decide to try home schooling. There are many good
Department of Education-accredited home-school programs
around at a fraction of the cost of normal big-school
education. My sister’s pastor’s kids were home-schooled
until high school. The child eventually entered Ateneo
and graduated summa cum laude. There are many successful
stories around. CCF and Victory Christian Fellowship
have really good home-school programs. They also have
regular interactive programs that allow home-school kids
to interact with each other. Imagine the savings if you
home-school your kids. . . better yet, invest the money
you saved from education and see it grow. . . . You will
have more than enough for your retirement, for health
care—with some extra to leave for your kids. Set aside
part of the savings for their college education, as
well, and invest it well. I guess I’ll do a follow-up
article on tips on investing for the education of our
kids. You can get many practical tips from http://www.income-tacts.com/
on educational investing.
Well, I
did mention that I still have one more kid not yet in
school, Chino. My wife Mia and I decided that we will
try home school for him. If we see good progress, we
might do the same for his older brother Riggs. I am sure
we will be better teachers to our own children. . . so
will you. Our decision to home-school our boys will
allow us time to properly take care of our daughters’
college education. . . prepare for the boys’ colleges,
save for retirement and hopefully enjoy quality living.
It’s not good to worry, but it’s great to plan.
****
J. Randell Tiongson is a training specialist,
personal-finance educator and coach and a director of
the Registered Financial Planning Institute. He has been
engaged in the various facets of the Financial Services
Industry for nearly two decades. He is also the
cofounder of www.income-tacts.com with Efren Ll. Cruz,
an interactive site dedicated in the financial literacy
of every Pinoy. For inquiries, you may send an e-mail to
randellt@gmail.com. |
